Restricting Credit Card Use !

The  " Newsagency " used to be an integral part of every suburban shopping centre but today they are few and far between.   It is now a common sight to find an empty shop where the newsagent used to have his or her stand. The profitability is simply not there to support that kind of business anymore.

The newsagent used to sell - and deliver - the daily newspaper to most households but newsprint has been replaced by the constant news channels flowing through mobile phones and tablets.  First came the end of afternoon newspapers and now even the main dailies are struggling to make a living.

Another important staple of the newsagency business was card sales.  Christmas was the peak of the card giving bonanza, but card sales were buoyant for Mothers day, Fathers day, Easter and even Valentines day.  The astronomical rise in postage and the development of messaging apps changed the way we respond to these national events.

Another sales bonanza for the newsagent was the resumption of the school year.  We traditionally went to the newsagency for the books and bags and all the other gear the kids would need for school, but discount specialist stores have emerged to tap into that market and with heavy advertising budgets they have taken a major share of the sales.

The meagre profitable business remaining for the newsagent was as sub-agent for Lotto and seller of the ever popular " scratchies "  which were convenient birthday gifts, but even that is under threat now that the Australian Banker's Association is threatening to withdraw the use of credit cards to purchase any form of gambling.  Such a move would not only sound the death knell for newsagents but would probably seriously restrict the entire horse racing industry.

A long time ago the only way to legally place a bet in New South Wales was to go to a racecourse and bet with a bookie. That restriction encouraged a massive plethora of illegal SP bookies operating out of the back bar of the local pub, and depriving the government of much needed tax dividends.  The government bowed to financial pressure and legislated for the creation of the TAB and a legal bet is now within reach of all who have attained their eighteenth birthday.

Unfortunately, gambling is addictive and it is a sad fact that problem gamblers sometimes deprive their families of life necessities when they fall into the clutches of their addiction.  This move to restrict credit cards use will seriously inconvenience the thousands of people who gamble responsibly for pleasure and disrupt the lives of thousands who make their living from the dog and horse racing industries.  Very obviously, it will also restrict the tax flow which is an important finance source for the government.

Not only newsagents will suffer if this move becomes reality. Restrictions on access to gambling will resurrect that crime element which made gambling accessible when it was illegal.  We could see a resumption of the days of the " loan shark " - going door to door providing finance at usurious interest levels.

The outcome could be very different from what was intended !